Duty-free retailing group Duty Free International 5SO has reported a 41.9% y-o-y decrease in earnings to RM2.4 million ($701,000) in its 3QFY2024 ended Nov 30, 2023, compared to its earnings of RM4.2 million in the same period a year before.
As a result, earnings per share for the quarter dropped to 0.2 sen, from 0.35 sen in 3QFY2023.
Revenue for the company in 3QFY2024 also slipped by 11.0% y-o-y to RM38.7 million, compared to RM43.5 million in the year before period.
The decrease in revenue was due primarily to the closure of the company’s Kuala Lumpur International Airport (KLIA) outlet due to the termination of its tenancy in April last year.
As at Nov 30, Duty Free’s cash and cash equivalents stood at RM161.7 million.
Despite positive indications of an ongoing economic recovery, the company says it anticipates the retail business environment in which it operates to continue to be challenging.
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This stems from the escalating product and operating costs arising from the weakening Malaysian Ringgit against major foreign currencies, along with the added strain of inflationary pressures and a cautious approach to consumer spending.
Duty Free says its “overarching goal” is to ensure that its core businesses remain resilient and robust in the face of these challenges in the next twelve months and will strive to continually improve its operational efficiency and effectiveness.
Shares in Duty Free closed 0.2 cents higher or 1.96% up at 10.4 cents on Jan 10.
